Impact of SME promotion measures is evaluated by applying counterfactual method of evaluation

Small and medium-sized enterprises (SMEs) constitute 99 per cent of the total number of enterprises in Lithuania. Gross value added (GVA) generated by the country’s SMEs amounts to two-thirds of the GVA of the whole Lithuanian business. Furthermore, more than 70 per cent of jobs are being created in the SME sector.

The Operational Programme for Economic Growth for 2007–2013 foresees investing more than 2 billion LTL from EU funds in increasing business productivity and improving business environment. These measures, administered by the Ministry of Economy of the Republic of Lithuania, are aimed at increasing volumes of export through increase in productivity of enterprises and their expansion into new markets, attraction of investments and job creation, promotion of new enterprise creation and improving conditions for business financing.

BGI Consulting is evaluating relevance, efficiency and impact of measures administered by the Ministry of Economy of the Republic of Lithuania. This evaluation is exceptional in terms of methods being applied, namely counterfactual method for evaluating impact. Even though the latter is relatively new in Lithuania, it is highly appreciated by the EC. Experimental and control groups of enterprises are formed. Experimental group encompasses enterprises that have been provided with financial support, while control group includes enterprises not subjected to financial support. Furthermore, similarity of experimental and control groups previous to interventions is verified by applying statistical tests. Changes of the main indicators related to the activities of enterprises are being analysed while comparing situations before and after the interventions and conclusions are being made on the impact of business promotion measures.

Results of evaluation will be presented in the evaluation report, as well as during the publicity event. 

The evaluation was commissioned by The Ministry of Economy of the Republic of Lithuania.